What is the impact of search on online advertising?

Source: Internet
Author: User
Keywords Yang Wenjian

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afternoon on the Chongqing business newspaper reporter mentioned Yahoo merged search and graphic advertising department to talk about their own views. The general view is that it is Yahoo's first move to consolidate and restructure a series of measures to improve the efficiency of its operations. However, the extension of this topic, coupled with the recent help for a network advertising companies to create VC, after the search business on the internet to bring about what impact on their own views.


   


Network advertising business has been the most important source of revenue for many internet companies, including Yahoo, Google and other companies. And this market has been favored by the industry, but also more and more traditional advertisers are favored ads targeted. The number of online advertisers is increasing every year, and ZenithOptimedia predicts that global online advertising will grow by 28.2% in 2007, while advertising investment in other media has risen by only 3.7%. Although the rapid development of Internet advertising is related to the increasing number of Internet users, it should be attributed to the enhancement of network search function, which makes the relationship between advertisers and consumers more direct and quicker. Data show that in 2004, U.S. advertisers need to spend nearly 40% of internet advertising costs to attract users to visit their company's Web site (the other two are to promote sales and enhance the impact of the brand), improve the flow of the company's Web site. In recent years, the search business has grown rapidly, having overshadowed all other businesses in the Internet and created a powerful force such as Google. With the formation of users ' demand habits through search engines, search has become an important channel for advertising targets, and the number of enterprises using search engines is growing fast, with China increasing by 35% a year. Using search engines to attract users more effectively has become an important part of advertising strategy.


   


    everyone sees a growing link between the search business and online advertising, and Google has made a good example of it by leveraging its powerful search engine to generate a sizeable advertising business, creating search ads and becoming the market leader. Yahoo has also used its search tools to promote the development of its portal classified ads. With the rapid development of the search market and the prospect of increasing optimism, search giants such as Google and Microsoft are clearly not content with the status quo, so it's convenient for them to get the resources of other online advertising companies and use their own powerful search business to put these resources into their own plates. They are accelerating the penetration of the online advertising market, at the expense of a staggering amount of money to buy online advertising companies: In April, Google announced a 3.1 billion-dollar acquisition of doubleclick,5 month Microsoft 6 billion dollar cash acquisition aquantive, Yahoo is unwilling to be in May to strategic investors right Media (the original 20% shares) of additional 680 million U.S. dollars for a wholly-owned acquisition-online advertising companies have recently become the Giants snapped up the sweet cakes. This reflects the industry dynamic-search business and network advertising will be more closely combined, search giants on the acquisition of online advertising and integration will further accelerate the development of the network advertising market, internet advertising will still be the highlight of the Internet industry!
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